Case 1: Trade association

Representing the transport and logistics companies both locally and nationally in Denmark as well as in the European Union, the trade association was chosen as a case because of its overview of general and more specific challenges of urban freight transport in Copenhagen. Thus, the interviewee discusses both some of the pressures that urban logistics service companies experience as well as pressures towards the association.

The approaches used to manage these strategies are solely from the point of view of the trade association.

The main stakeholders the trade association deals with are transport companies, authorities on various political levels, other interest associations, and to some extent citizens. The interviewee discussed a range of issues related to urban freight transport, how the interactions between stakeholders impact these challenges, as well as the approached taken to navigate in the urban space and serving the members’

interests. The findings are based on the thematic analysis in Appendix 4a.

5.2.1.1 Institutional pressures

Transport companies experience a range of physical and spatial constraints when delivering goods into urban Copenhagen. For instance, the interviewee mentions restricted space to go up and use other means to deliver goods, such as helicopters, as an important issue. Construction projects in several parts of the city, restricted parking, pavements, and poor shop access are seen as impediments to efficient deliveries and the

51 objective of the city of Copenhagen to get the delivery companies to enter and leave the urban areas as quickly as possible. The interviewee elaborates:

Yes, we have a very big issue with all the constructions going on in the city all the time. The metro project, but many, many other projects. The city of Copenhagen is building a […] heating [system].

They’re going to have warm water in pipes all over the city to heating for here and there and everywhere. And it demands a lot of digging, all the time, everywhere.

(Participant 1, Appendix 2a, line 39)

While competition with other actors for space is common in urban areas, Copenhagen is seen as particularly complex compared to other cities and towns both in the US and in Europe. This is due to the large number of bikes and pedestrians sharing public space with other public and private actors. An increase in e-business activities is expected to further drive transport and the related challenges. These spatial and physical constraints fall into the group of coercive institutional pressures.

Because space and infrastructure is restricted, freight in urban areas leads to negative externalities such as noise and the deterioration of the environment. In an effort to counter this, a range of regulations are put in place on logistics service providers. The regulations are imposed from both a European Union authority level, as well as local authority levels such as from the municipality of Copenhagen. Some EU regulations are implemented on a national Danish level, and include requirements to vehicles, engines, and fueling, whereas local regulations to a larger degree cover access to the city, environmental zones, parking rules, and noise reductions. Referring to a particular regulation to upgrade vehicle engines to a specific standard to reduce the amount of nitrogen oxide (NOx) air pollution that was emitted, the interviewee says:

So that was quite costly for the business at that time. So we had a struggle at that time, to find out how tight should this regulation be or how many years would we have to yeah, to invest in new trucks or in particular filters. I think we found a good middle way, and so we could manage it as an industry. But it was tough. […] We talked about I think 2 billion DKK was the worst case scenario, and I think we ended up with half a billion DKK of industry costs, over a year or two.

(Participant 1, Appendix 2a, line 26)

Adhering to such environmental regulations is not just seen as a legal necessity, but also as a way for transport companies to become more competitive now and in the future. At the moment, demands for

52 environmentally friendly and sustainable practices largely come from public actors, and private actors are lagging behind. However, the trade association expects that these expectations will increase both in terms of scope and where they come from. This includes citizens. The trade association is in little contact with individual citizens, but explains how they are prioritized and carefully listened to by politicians. When there are aspects of their environment they are not content with, a complaint to the municipality can alter plans and even shut down projects that impact them negatively. Citizens can formally or informally pressure organizations to adapt to their expectations or wishes. Both regulations and expectations from other organizations are coercive pressures.

Just like in other cities, the field of urban freight transport in Copenhagen is characterized by its composition of many actors with different objectives. Collaborative initiatives are often launched by authorities in order to get those actors together with the purpose of finding common solutions through dialogue, knowledge-sharing, and best practice. The interviewee represents the association in a freight network recently established by the municipality of Copenhagen, including representatives from the local authority level, universities, transport companies, and other trade associations. The association is also part of a Nordic collaboration for best practice and collective influence towards the EU. Best practice encourages the imitation of other organizations’ structures or practices based on their success, and may be a result of uncertainty in the operating environment or around technical developments. Additionally, collaborating with other professionals within the same field, may contribute to the diffusion of new ideas or norms that shape organizations in similar manners. As such, collaborative networks can be the source of both mimetic and normative pressures.

Source/Type Coercive Mimetic Normative

Urban context Physical restrictions related to space and infrastructure

Environmental complexity Competition for space with a large number of cyclists and pedestrians in addition to public and private actors

Authorities Regulations on vehicles, engines, fueling, as well as access, parking, and noise

Authorities Demands for

environmentally friendly and sustainable practices

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Citizens Complaints and actions

against unwanted initiatives and projects

Networks Knowledge sharing on

best practice

Diffusion of new professional practices and norms

Table 8. Sources and pressures summarized, Case 1. Source: Author

5.2.1.2 Strategies to manage institutional pressures

The interviewee mainly refers to two types of activities and approaches when dealing with the various challenges and stakeholders in the urban freight transport environment in Copenhagen. With the objective of representing the member companies in discussions with a variety of associations and authorities, the main activities of the trade association are dialogue and lobbying through the participation in a variety of networks and collaboration initiatives, where the aim is to better understand the problems of urban freight and to find possible solutions. On the benefits of participating in the freight network in Copenhagen, the interviewee explains:

Well it is dialogue and that may lead to... we can find some solutions, small solutions maybe bigger solutions and in the long run we can avoid stupid solutions and some quick fixes that someone thinks should be a good idea. […] we might avoid stupid solutions. Or costly solutions.

(Participant 1, Appendix 2a, line 17)

Another activity is offering their members advice on a range of issues, including environmental policy, traffic safety, and eco-driving, with the objective of improving the conditions and competitiveness of logistics service companies now and in the future. Developing and issuing certificates to the members that comply to a range of environmental and economic requirements is also part of their activities.

Most of these activities fall into the strategic approach of compromise (Oliver, 1991), where the expectations of multiple constituents are balanced against each other, institutional elements are placated or accommodated, and processes are negotiated with other stakeholders. In some cases, it can be argued that the trade association uses a manipulation influence strategy, where it actively tries to influence the criteria for acceptable practices or performance in discussions with authorities on various levels.

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